- Advertisement -
- Advertisement -

Related

Investors Flee Hedge Funds

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – Capital is flowing out of the hedge fund industry for a third consecutive quarter, according to alternative data specialist Preqin. Investors pulled out $45.1 billion from the industry in the fourth quarter of 2018, which brought last year’s total volume of net outflows to $33.9 billion.

The fourth-quarter outflows were mainly attributable to equity-focused and CTA strategies, which registered net outflows of $20.9 billion and $21.3 billion, respectively. For the entire 2018, equity strategies posted the most massive redemptions across all main strategies tracked by Preqin. The net outflows amounted to $23.7 billion and brought the assets under management for the strategy down to $852.8 billion.

Multi-strategy vehicles and funds employing niche strategies were the only two groups of strategies that attracted investor capital in the fourth, posting net inflows of $1.4 billion and $7 billion, correspondingly. According to Preqin data, the hedge fund industry’s assets under management stand at $3.45 trillion as of the end of December, which marks a year-over-year decline of 3.5 percent.

Other sources corroborate Preqin’s findings. Hedge fund data provider Hedge Fund Research (HFR), for instance, writes that investors redeemed an estimated $22.5 billion from hedge funds in the four quarter. The fourth-quarter redemptions brought the hedge fund industry’s full-year capital outflows to $34 billion, leaving the industry with $3.11 trillion in assets under management.

 

Picture © Lightspring—shutterstock

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

A Story of Data in the Age of Data Deluge

Transtrend started as a research project in 1989. We had bought data and computers, hoping something could be done with that. So, that’s what...

Proxy P’s Bet on Traditional Utilities Amid AI-Driven Power Surge

Since its launch in late 2018, fund boutique Proxy P Management has managed a directional long/short equity fund focused on renewable energy and energy...

November Halts Nordic Hedge Fund Momentum

After six consecutive months of gains, the Nordic hedge fund industry recorded a slight dip in November, edging down 0.3 percent on average. With...

Trade-off Between Illiquidity and Rebalancing Premium

In the search for diversification and higher returns, institutional investors worldwide have steadily increased their exposure to illiquid asset classes such as private equity,...

Diversification in the Era of Monetary Reset

Diversification has long been a cornerstone of investing, designed to balance risk across different markets and asset classes. But with fiat currencies under persistent...

Three Years In, Norselab’s Flagship Fund Reaches More Radars

After years of co-managing Alfred Berg’s high-performing high yield fund, Tom Hestnes has spent the past three years proving his strategy in an alternative...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.